WorkMarket an ADP Company

Bridget Quinn Kirshner

As the labor market continues to shift and people reassess their ideal work experience, estimates expect the gig economy to grow to 86 million people by the year 2027. In fact, 4 million Americans quit their jobs this last July, according to the U.S. Bureau of Labor Statistics, after a peak in April. Studies by the Morning Consult for Prudential also found as recently as this past October that 46% of full-time employed U.S. adults are planning to, or are actively engaging in, looking for a new job.

As this movement creates changes across all industries, employers need to prepare for a competitive talent market.

Why are workers leaving?

To understand how to attract and retain top talent, we first need to know why they are leaving.  Studies indicate that high burnout rates, especially in mid-level workers, healthcare and IT industries, were the leading contributor to the number of resignations seen in those sectors. 

Many workers are starting to realize that they are living to work, instead of working to live. The impacts of living through a major pandemic, and dealing with the vast fallouts, have caused many to rethink their priorities. The Atlantic has stated that many workers “have had to reconsider the boundaries between boss and worker, family time and work time, home and office.” During this reconsideration, many have realized that this boundary has been blurred for far too long.  More focus is now being put on developing a distinct work-life balance, where the worker has more control over the when, where and how they work.

As a result, these talented workers are increasingly deciding to go out on their own as freelancers, especially those with specific knowledge-based roles. With this rising shift to the workforce, how can you attract this new division of workers? How do you make your brand and your projects more appealing to them? And how do you ensure they continue to come back and continuously work with you?

Tips to Attract and Retain Contingent Workers

1. Pay special attention to how you pay gig workers–Most  gig workers prefer electronic payment over paper checks.Furthermore, workers overwhelmingly prefer ACH (automated clearing house) to withdraw funds –with nearly 80% of workers on ADP’s freelance management software, WorkMarket, selecting ACH compared to other electronic methods.How you pay your contingent workers, and how quickly you pay them, can have a significant impact on their overall retention when working with gig workers.
2. Improve your employer brand - Whether candidates are seeking a full-time position or a freelance gig, company culture ranks very high on the list of factors that go into the decision process.  Having a strong employer brand can directly impact your ability to hire on-demand talent. Share your company’s history, mission, and values, while emphasizing the special role contingent workers play in your organization’s future. Be sure to highlight what sets you apart from other companies within your industry and don’t be shy about touting employer brand awards, such as “Best Places to Work.” 
3. Build strong relationships - Just because a contingent worker is temporary doesn’t mean the relationship with them needs to be just skin deep.  Freelancers, contingent workers, gig workers, and other independent contractors, can be strong brand advocates. Consider a brand ambassador program where workers can accumulate points (which can then be redeemed for prizes) by engaging in different activities with your company.  Or perhaps set up a referral program where workers receive a bonus if the freelancerthey referred successfully completes an assignment for the company.
4. Ask for feedback - No person, entity, business, or situation is perfect.  We all make mistakes, but making the same mistakes over and over again is unacceptable. One of the best ways to improve your engagement with freelancers is to ask them for feedback and actively listen to their inputs. Things like was there a clear scope of work? Were we responsive enough with you?  Do you feel that your suggestions were heard? Periodically survey your contractors to identify and address areas of improvement.
5. Invest in the right technology– You need to invest in the right technology to provide a great experience for workers.  First, as most workers will be remote, you need a digital onboarding process that makes it easy for your contingent workers to validate their credentials. Streamline check-in/check-out processes for assignments where workers can capture and submit proof of performance.  Leverage a mobile app, so workers can easily communicate with you on the go and confirm completion of assignments at client sites. Finally, automate invoicing and payment processes to ensure workers are paid in a timely fashion.  Consider freelance management systems  that can help you streamline processes to onboard, manage and pay your contingent workforce.

Winning The War For Talent

With many employers continuing to navigate strains on talent, developing an HR strategy to effectively recruit, manage and engage a contingent workforce is critical. These independent contractors allow businesses to scale up and down based on customer demand, helping organizations save money and time while leveraging specialized talent. By building a holistic workforce, employers can successfully flex to meet the unique demands of the modern business environment and better position themselves to achieve future growth.

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